Companies are announcing targets for net-zero carbon emissions across their entire product and customer base.
The reasons for this are clear, simple targets, and intent statements are not enough. Investors are aware that the climate crisis is here now and unless cutting emissions is done quickly, climate risks will rise exponentially. A 2050 horizon is one that is way too far.
Action for the 2030 timeline is what is urgently needed. Secondly, reducing emissions needs business model transformation and deeper insights into second-order effects—the people you buy from and the people you supply to also need to be considered. To restore the climate and have a safe future, we need to maximise mitigation, adaptation and removals. The financial system is the glue that holds everything together and for it to stand up and be counted, it needs to go beyond intent and first-order effects.